Teenagers experiment all the time, AoG. Education or Gay Pride marches are not going to change that. All things being equal, more knowledge is always infinitely preferable to less, and attempting to ban such a dialogue on the full spectrum of human sexuality to teenagers seems both repressive and outdated.
The world would be a far better place if the State and various Religious organisations stopped interfering in human sexuality, beyond factual warnings about the some of the negative consequences of sex - unplanned pregnancies, sexually transmitted diseases etc.
All the surveys and studies suggest that a very large proportion of teenage males have had some kind of homosexual experience - around 30% - but such experimentation fairly obviously does not alter your innate sexual orientation. Indeed the proportion of males that are declared homosexuals has remained remarkably consistent at somewhere around 10-15%, despite a growing acceptance of homosexuality, certainly within western cultures.
This amendment to the law seems far to open to interpretation, and can be used to justify discriminatory or repressive tactics by the state, and no one from a democracy should be comfortable with that.
Pragmatically speaking though, on the subject of the games themselves, it probably is too late to switch them to a different venue. It would be interesting to see what effect a very public demonstration by the athletes might have.